CME: Talk of Weak Prices Stimulating Demand Leaves Futures at $121.15, Thursday28 June 2013
US - June live cattle futures settled 12 1/2 cents lower closing at $121.15, while deferred contracts closed 35 to 77 1/2 cents higher, which was high-range in most contracts.
Live cattle got much of their support yesterday from chart-based buying as futures pushed through key technical levels and on late spillover from the hog market, write ProFarmer analysts.
August cattle closed sharply higher on the on Thursday and closed near the highs while pushing up to the highest level since May 3rd, write market experts at the Chicago Mercantile Exchange.
The market pushed moderately higher again on Thursday as fund traders continue to be fairly aggressive buyers. Talk that the recent weakness in beef prices might stimulate demand at the same time that supply begins to tighten has helped to support the market.
Volume of beef pushed up to 215 loads yesterday from 132 loads on Friday and just 139 loads on Monday. Traders also see cash markets at least steady this week as weaker beef is offset by tighter showlist supply.
Traders are more optimistic over demand for the next few weeks due to
1) slightly cooler than normal temperatures across the Midwest and
2) much better than expected consumer confidence readings.
In addition, weekly U.S. beef export sales for the week ending June 20th came in at 20,000 metric tonnes, compared with the prior 4-week average of 13,450 tonnes.
Cumulative sales for 2013 have reached 413,100 metric tonnes, down 16.9 per cent from last year's pace.
Boxed-beef cut-out at mid-session came in at $197.59, up $1.08 on the day but down from $199.30 last week at this time.
Slaughter came in higher than expected at 125,000 head which could suggest that packer demand for live inventory is better than expected.
TheCattleSite News Desk